McEvoy and Associates Finance Act 2011
Finance Act 2011
The President signed the Finance Act on 6 February 2011 and it has now come into law.
It is likely that a second tax act will be introduced in April of this year to provide for tax changes to give effect to the Civil Partnership Act. The new government and the Department of Finance may take this opportunity to bring in additional amendments to the tax code.
The highlights of the Finance Act include:
¨ Introduction of the Universal Social Charge and an extension of the sources of income which are subject to the USC and PRSI.
¨ Significant changes to the tax treatment of pensions and share incentive schemes.
¨ The changes to the restriction of property incentives have been deferred, but could still be introduced this year.
¨ No change to pay and file deadline for self-assessed taxpayers. However, this is likely to be reviewed by the next Government.
¨ Introduction of a penal USC rate on bankers’ bonuses.
¨ New system of relevant contracts tax.
¨ New BES scheme.
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